What is the retainage cap in Massachusetts?

On public work the planning cap is 5%. On private work it is 5% on qualifying private jobs (c. 149 § 29F). Bid documents and the subcontract still control if they are stricter.

How fast must a prime pay a sub in Massachusetts?

10–15 days after the prime is paid. Owner or agency to prime is Public: 30–45 days after invoice. Late-pay interest: 1% monthly on public late pay.

Massachusetts · MA

Massachusetts retainage law and prompt-payment rules

Public cap 5%. Private commercial retainage is often 5% by statute on jobs in § 29F scope — not the old 10% habit. Start in the code: Mass. Gen. Laws ch. 30 § 39K; ch. 149 §§ 29E, 29F.

Use this page when you are bidding or billing a job in Massachusetts. Public retainage is listed as 5%; private as 5% on qualifying private jobs (c. 149 § 29F). Typical public release is 30 days after acceptance.

Then open the retainage calculator for the dollars, or the G702-style pay application if you need line-by-line previous certificates.

Massachusetts retainage law (c. 149 §§ 29E and 29F)

Massachusetts is already a search for “massachusetts retainage law.” Public work is the familiar 5% cap under G.L. c. 30 § 39K. Private commercial work is not “whatever the GC typed”: § 29F caps retainage at 5% of a progress payment on qualifying private construction contracts, with a written release procedure after substantial completion. Modeling 10% on a 29F job is the wrong Line 5.

The companion Prompt Payment Act is G.L. c. 149 § 29E. It sets invoice approval and pay windows on larger private jobs (commonly original price of $3 million or more, excluding 1–4 unit residential). If your subcontract is outside that scope, the statute may not apply — read both sections before you argue a late-pay or retainage fight.

Public late pay can draw 1% per month. Prime-to-sub pass-through is often 10–15 days after the prime is paid. Run the retainage calculator at 5% on a qualifying Massachusetts job, then keep previous certificates aligned on the G702-style worksheet.

Statute text: Mass. Gen. Laws c. 149 § 29F. Confirm the current code before you rely on a date.

Where is the job?

State and project type drive retainage caps and payment clocks

State

Project type

Caps and clocks change with project type, contract value, and the year you signed. Planning table only — confirm the current statute before you rely on a date.

Massachusetts — private work

Retainage cap5% on qualifying private jobs (c. 149 § 29F)

Typical retainage release§ 29F release procedure on qualifying private jobs

Interest / penalty1% monthly on public late pay

Owner / agency to primePublic: 30–45 days after invoice

Prime to sub (after prime paid)10–15 days after the prime is paid

Start in the codeMass. Gen. Laws ch. 30 § 39K; ch. 149 §§ 29E, 29F

Public cap 5%. Private commercial retainage is often 5% by statute on jobs in § 29F scope — not the old 10% habit.

Summaries compiled for planning. This site is not a law firm.

Run the retainage dollars

Questions this page answers

What is the retainage cap in Massachusetts?: On public work the planning cap is 5%. On private work it is 5% on qualifying private jobs (c. 149 § 29F). Bid documents and the subcontract still control if they are stricter.
When is retainage released in Massachusetts?: Public jobs typically release 30 days after acceptance. Private jobs: § 29F release procedure on qualifying private jobs. Confirm the contract date — several states changed caps in 2025–2026.
How fast must a prime pay a sub in Massachusetts?: 10–15 days after the prime is paid. Owner or agency to prime is Public: 30–45 days after invoice. Late-pay interest: 1% monthly on public late pay.

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